Tube Investments' shares up over 16% on stake sale nod

Shares of Tube Investments of India rose over 16% in the morning trade on BSE on Monday after the company's board approved selling of its 14% shareholding in Cholamandalam MS General Insurance Company (Chola MS) to its joint venture partner Mitsui Sumitomo Insurance Company (MSI), for a consideration of Rs 882.67 crore. 

However, at 1144 hours, the stock of the company fell slightly from its morning level to 11.47% or Rs 45.90 at Rs 446.00 per scrip intraday on BSE. 

On Monday, the stock of the company opened at Rs 438.00 per scrip on BSE, while the previous close was at Rs 400.10 per scrip. The day's high and low stood at Rs 467.00 and Rs 431.00 per scrip intraday, respectively.  

Upon completion of the transaction, MSI will increase its ownership in Chola MS from 26% to 40%, the company said in a regulatory filing to BSE. 

" I am delighted that MSI is increasing its stake in Chola MS to 40%. This will further strengthen our relationship with MSI and help realise our vision in making Chola MS a most respected General Insurer in India," cited the company statement quoting M M Murugappan, Chairman, Tube Investments of India, as saying.